Air fares took another dive last month, following a wild ride over the past year, reflecting volatile energy prices and changes in demand.
Prices fell 18.9 percent in the year to June, or 8.1 percent between May and June, even as passenger traffic reached a record high. The numbers are somewhat deceiving, however, due to a combination of circumstances.
Ticket price became popular last summer as Americans plan the vacations they were denied during the pandemic. At the same time, airlines are struggling to provide seats, having mothballed planes while no one flies and letting go of staff in a wave of retirements of pilots and other staff. Then, jet fuel prices rose, and air carriers passed the additional costs on to customers.
Those factors have dropped dramatically in recent months. Airlines are aggressively hiring for all positions and adding flights, bringing capacity back to prepandemic levels. And while energy prices have moderated, ticket prices have also come down.
Although this summer has seen its share of chaos at airports, much of that is due to the weather; Airlines also blamed the lack of air traffic controllers.
However, there are important wrinkles in how airfares are measured, making analysis difficult.
It is difficult to adjust for seasonal factors in air travel, due to the severe disruption during the pandemic. Also, the Labor Department’s price index is heavily comprised of domestic flights — international routes saw the biggest price increases, as more travelers flocked to overseas destinations.